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<br />'. <br /> <br />16, the Colorado General Assembly authorized CWCB to loan to the Borrower an amount <br />not to exceed an additional $4,000,000 for the Project, for total loan authorizations of <br />$8,000,000, <br /> <br />10. Certain shareholders of the Borrower that will participate in this loan are Vail Associates, <br />Inc., the Upper Eagle Regional Water Authority, and the Eagle River Water and Sanitation <br />District (hereinafter individually and collectively referred to as "Owner" or "Owners," <br />respectively). Repayment of portions of this loan shall be secured severally (not jointly or <br />collectively) by each Owner pledging certain shares of the Borrower's stock (the "Shares") <br />and certain of each Owner's associated water rights (the "Water Rights") as security <br />therefor. Said pledge of each Owner'S Shares and Water Rights shall secure only a <br />portion of this loan as set forth on Appendix A attached hereto and incorporated herein, <br />plus interest thereon, and late charges, if any. <br /> <br />11, The State now desires, by this Contract, to loan money to the Borrower for the Project <br />upon mutually agreeable terms and conditions. <br /> <br />AGRl:EMENT- <br /> <br />THEREFORE, in consideration of the mutual and dependent covenants contained herein, <br />the parties agree as follows: <br /> <br />A. Loan. <br /> <br />1, Agreement To Loan Money. The State agrees to loan to the Borrower $7.492,520 at an <br />interest rate of 5.45% per annum for a term of thirty (30) years (the "Loan"), <br /> <br />2, Time for Project Purchase. The Borrower recognizes that time is of the essence in the <br />performance of all of its obligations under this Contract, and therefore shall complete the <br />Project purchase within two (2) years from the date of this Contract. The time for completion <br />of the Project purchase may be extended subject to the approval of the State, The Borrower <br />must provide, in writing, documented justification for any request for extension sixty (60) <br />days prior to the end of the periOd for completion, <br /> <br />3. Disbursements. The Loan shall be made on the date and at a time selected by Borrower; <br />provided, however, the Borrower shall request, in writing, the amount of Loan funds needed <br />for closing on the Project purchase not less than two weeks before the closing date of that <br />purchase. At closing, the Borrower shall execute the Promissory Note described below and <br />the State shall deliver to the Borrower the proceeds of the Loan. <br /> <br />B. Promissory Note. <br /> <br />1. Terms, A Promissory Note setting forth the terms of repayment and evidencing the Loan in <br />the amount of $7.492,520 at an interest rate of 5.45% per annum for a term of thirty (30) <br />years is attached hereto as Appendix 6 and incorporated herein. (The interest rate of <br />5.45% is based on the interest rate that would occur if the Borrower received the full <br />$8,000,000 loan; $3,125,000 at 5,75% per annum and $4,875,000 at 5.25% per annum.) <br />All interest accrued shall be calculated on the basis of actual days elapsed and <br />compounded annually. <br /> <br />Eagle Park Reservoir Company <br /> <br />Page 2 of 13 <br /> <br />Loan Contract <br />